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. _ <br /> PART IV <br /> TERMS AND CONDITIONS GOVERNING GRANT <br /> (Governmental Entities) <br /> 4.1 APPLICABLE TIME LIMITATIONS. <br /> (i) Completion of Performance. All activities described in Part III hereof, which are <br /> chargeable to grant funds provided by this Agreement, must be completed by the grant <br /> period end date set forth in the Notice of Grant Award. <br /> (ii) Expenditure of Grant Funds. All grant funds provided under this Agreement must <br /> be expended or legally obligated by the grant end date set forth in the Notice of Grant <br /> Award. Grant funds not expended by the grant end date must be returned to the <br /> Department in accordance with directions provided by the Department. <br /> 4.2 INTEREST ON GRANT FUNDS. Any interest earned on grant funds provided under <br /> this Agreement must be accounted for and returned to the Department in accordance <br /> with the directions provided by the Department. Notwithstanding, the Grantee may be <br /> allowed to retain interest earned on grant funds awarded under this Agreement, <br /> provided that all of the following requirements are satisfied: <br /> (i) All interest earned must be accounted for and reported to the Department in the <br /> Grantee Close-Out Report in described in Section 5.4(B) herein. <br /> (ii) Interest may only be expended for activities which the Department determines are <br /> consistent with the Appropriation authorizing the funding for this grant; and <br /> (iii) The Grantee must submit any request to retain interest in writing to the <br /> Department's Office of the General Counsel. The Grantee must state the basis for the <br /> request, describe the activities on which interest will be expended and acknowledge its <br /> agreement to comply with the provisions of Section 4.2 hereof. <br /> The Department will notify the Grantee in writing of its approval or disapproval of the <br /> request to retain interest. <br /> 4.3 REFUNDS TO THE DEPARTMENT. Any refunds (unliquidated grant balance, <br /> interest earned on grant funds, or ineligible/improper grant expenditures) due the <br /> Department shall be remitted by the Grantee upon demand and pursuant to instructions <br /> issued by the Department. <br /> 4.4 BUDGET/SCOPE OF WORK MODIFICATIONS. <br /> (i) Grant Budget (Part 1). The Grantee must obtain prior written approval from the <br /> Department for any expenditures which materially vary from the expenditures set forth in <br /> Part I hereof. For purposes of this Agreement, "materially vary" means any variance <br /> within the line items set forth in Part I which exceeds 10%0 of the amount established <br /> for that line item or any line item added or substituted for a line item in Part I hereof. <br />